In a strong show of support for the Health Center, the General
Assembly ended its 2000 session with the House and Senate each
voting unanimously for a state budget that included a $20 million
infusion to help the Health Center overcome its deficit and
invest in research. A separate piece of legislation establishes
a legislative review committee to look at a number of financial,
operational and programmatic issues at the Health Center.

The money is spread out over two fiscal years through June 30,
2001, and consists of $12.5 million this fiscal year and $4.4
million next fiscal year to meet a projected deficit. The remaining
$3.1 million is for support of the Health Center's strategic
plan for research.

"Clearly on balance this was a relatively successful session
for the University," said President Philip E. Austin. "We were
particularly gratified by the General Assembly's response to
the Health Center's needs, which we take as a strong statement
of support for the Health Center's role as a center of teaching,
research and service to the greater Hartford community and the
state.

"In most other respects, too, the Legislature responded positively
to the University's needs," Austin said. "A million dollars
is being provided to augment Storrs-based academic programs
and I am also delighted that we can now look forward to becoming
a member of the Big East football conference and playing in
a new football stadium."

Peter J. Deckers, dean of the medical school, welcomed the support
for the Health Center.

"We're very pleased that the Legislature committed to help us
through our financial difficulty," he said. "This financial
help does not solve all of our problems, however. We must continue
to cooperate and work together to meet the challenges that all
academic medical centers face and to ensure the quality and
vitality of our clinical, educational and research programs."

The review committee will consist of 12 legislators, including
the co-chairs and ranking members of the appropriations, public
health and education committees. The most important responsibilities
of the committee include:

evaluating the future of the Dempsey Hospital and the medical
and dental schools;

and recommending whether the Dempsey Hospital should have
a board of directors who would report to the UConn Trustees.

Although the legislation requires a number of additional reporting
and oversight measures, it specifically states that nothing
alters the governance, fiscal authority or operating responsibilities
of the Board of Trustees.

"We're delighted that the General Assembly expressed its confidence
in the Health Center by allocating money to address the operating
shortfall," said Lorraine Aronson, vice president for financial
planning and management. "We see the work of the legislative
review committee as an opportunity for us to establish a level
of understanding and interaction with the members of the Legislature
who hold the key to the Health Center's future."

in Medicare reimbursements due to the Balanced Budget Act of
1997. A number of initiatives, including workforce reductions,
were undertaken by the Health Center's management to reduce
the institution's costs and

improve revenues. But it was apparent that legislative help
in the form of additional appropriations was necessary.

"This legislation shows that the General Assembly understands
the Health Center's financial needs and recognizes the value
the Health Center offers to the state," said Thomas Q. Callahan,
associate vice president for governmental relations.

The Health Center's review committee will also:

evaluate medical education,
research and health care delivery at the institution;

review medical and dental student tuition and fee levels;

review and monitor compensation, benefits and contracts;

make recommendations concerning the UConn Foundation and
other fund-raising efforts.

The legislation also addresses the bigger health care picture
in the state: it establishes a commission on the future of hospital
care in Connecticut. The commission will assess the state of
health care and make a report to the Legislature by the end
of 2001.